Investment Strategies
Commercial Real Estate Lending
Strategy overview:
Our commercial real estate lending strategy originates-to-hold first lien mortgages on transitional properties
- Vertically-integrated platform driven by a regimented credit process, quantitative modeling of individual loans and the firsthand involvement of our team throughout deals to help inform investment decisions
- Seasoned investment team with deep experience sourcing, underwriting, closing and asset managing loans with similar credit profile throughout different market cycles
- Proprietary data and analytics1 provide differentiated insights and modeling of comprehensive scenario-based analytical analysis to inform underwriting, loan structuring and pricing
Financing Capabilities
| Loan Size | $10 to $75 million collateralized by institutional quality CRE assets |
|---|---|
| Loan Type | Floating rate, senior loans on middle market property acquisitions and refinances backed by value-add investment strategy |
| Asset Types | Primary sectors: Office, retail, multifamily, industrial, mixed-use and hotel properties Other potential sectors: self-storage, student housing, and single family rental portfolios. |
| Geography | Markets across the United States |
| Loan Term | Estimated: 2 to 5 years |
| Loan To Value/Loan To Cost | Up to 75% LTV/LTC |
| Debt Service Coverage Ratio Requirements | Existing DSCRs below 1.0x are acceptable |
| Loan Fees | Typically 1 to 1.5% |
| Recourse | Typically non-recourse |
Commercial Real Estate Lending
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Sean Dobson Chief Executive Officer and Chief Investment Officer
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Christopher Kelly Head of Commercial Real Estate Lending
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Abbe Franchot Borok Head of Originations, Commercial Real Estate Lending
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Gabe Boyar Originations
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David Skoien Head of Asset Management
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Brad Donaldson Head of Underwriting and Transaction Management
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Transitional Lending - The Sweet Spot in CRE Investing
White Paper - March 2017
Click Here to Download
This paper examines the risk-reward associated with investing in stabilized/non-stabilized CRE, and argues that low leverage loans backed by transitional properties are the sweet spot for CRE investing in the current environment.
1 - Provided through Amherst InsightLabs (“AIL”). Amherst Capital has an exclusive license with AIL in the asset management industry. AIL is an affiliate of Amherst Holdings, LLC.